78 PROBLEM 79 Assume that you just won $700 million in the California Powerball lottery, and hence the state will pay you 35 80 annual payments of $20 million each year beginning immediately. If the rate of return on securities of 81 similar risk to the lottery earnings (eg., the rate on 30-year U.S. Treasury bonds) is 1.93 percent, what B2 is the present value of your winnings? 83 84 85 86 87 88 89 PV(Annuity Due) - PV of an ordinary annuity X (1+1) 90 91 92 93 94